The first generation of the Toyota C-HR subcompact crossover, designated AX10, debuted at the Paris Motor Show in 2016. Built on the TNGA-C (GA-C) modular platform, the vehicle featured a low center of gravity and a double-wishbone rear suspension, providing sharp driving dynamics and agile handling. Its striking coupe-like silhouette, hidden rear door handles, and sculpted body panels targeted a younger global audience. Inside, the cabin offered high-quality materials and a floating touchscreen infotainment system.

Powertrain options for the C-HR AX10 included a 1.2-liter turbocharged gasoline engine producing 116 hp, naturally aspirated 2.0-liter engines for select markets, and hybrid setups pairing electric motors with 1.8-liter (122 hp) or 2.0-liter (184 hp) engines. A fully electric C-HR EV variant with a 204 hp motor was produced for the Chinese market starting in 2020. In 2019, Toyota introduced a mid-cycle facelift featuring redesigned bumpers, updated LED headlights, and expanded Toyota Safety Sense capabilities. Production of the first generation concluded in 2023.